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RFH 2010, Cover Stories, News

Town Financial Controls Criticized by State Comptroller

Wed, Nov 24, 2010

New York State Comptroller Thomas P. DiNapoli yesterday made public an audit that showed because of what it called "poor financial controls and practices" the Town of Hamilton amassed more than $1.2 million -- an amount that exceeds the town's annual budget -- in reserves.

The audit covered the period from Jan. 1, 2008 to July 31, 2009.

A statement by DiNapoli said, "Town of Hamilton officials were unable to determine how much money they actually had in their fund balance.  As a result, the town accumulated more than $1.2 million in cash that should have been used to benefit taxpayers. Hamilton has to do a much better job protecting taxpayer money and accounting for its funds.”

According to the comptroller's office, the town collected $656,000 in taxes for the 2009 fiscal year despite having $1.2 million in cash already on hand. The town’s total annual budget in 2009 was $1.16 million. A statement by DiNapoli said, "The excess funds could have been used to bolster necessary reserves, reduce property taxes or pay for one-time expenses."

That statement also said "... the board could not monitor the town’s financial condition because the former supervisor (Walt Jaquay) did not provide monthly financial reports. He also failed to file annual financial reports with the Office of the State Comptroller or the town clerk since 2003. Auditors determined that the former supervisor did not provide sufficient oversight over town bookkeepers, leaving accounting records unmaintained.  

"Additionally, the board did not audit the supervisor’s records or reports, and town officials were unable to determine if one fund’s cash has been improperly used. This means there is an increased risk that funds could be misused without detection.
 
DiNapoli’s auditors recommended the board:

  • use excess fund balance or surplus cash to benefit taxpayers;
  • ensure that it receives the necessary financial documentation to monitor the town’s finances; and
  • audit the records and reports of the supervisor on an annual basis.

The town has hired an accounting firm to keep the books and provide financial reports.

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Comments(2):

  1. Sunday, November 28, 2010 Charlie

    After his election on November 2nd, 2009, the new Town Supervisor Bob Kuiper contacted bookkeeper Linda Jones, having heard that the State Comptroller had conducted an audit that summer. After taking office in January 2010, Kuiper replaced Jones and instituted with the approval of the new board the financial controls that had been requested by the Comptroller.

  2. State Auditors Report - Town of Hamilton

    Tuesday, November 30, 2010 Donna M.

    Now the town is hiring an accounting firm to handle its books, isn't that what the Town Clerk is supposed to do as part of their job? Maybe the Supervisor, Town Board and other elected officials should educate themselves on New York General Municipal Law or each purchase a town Law Manaul from the state Associations of Towns. The citizens should hold thier representatives accountable and get involved to make sure they are doing the job they were elected to do!